New York 2025-2026 Regular Session

New York Assembly Bill A08030

Introduced
4/22/25  
Refer
4/22/25  

Caption

Sets the definition of "principal" for the purposes of limits on amount of flood insurance required by a mortgagee; clarifies applicability of the state law relative to certain federal programs and requirements.

Impact

The legislation directly affects the requirements related to flood insurance for residential properties. It clarifies what constitutes 'principal' in cases of open-end lines of credit, emphasizing that the full line of credit should be considered for insurance coverage. Furthermore, it mandates mortgagees to notify mortgagors about potential inadequacies in the required flood insurance coverage, encouraging them to consider additional protection. This amendment seeks to align state law with federal standards while ensuring that homeowners are adequately informed about their insurance options.

Summary

Bill A08030 introduces amendments to the real property law specifically regarding the limits imposed on flood insurance that mortgagees can require from mortgagors. The bill establishes that no mortgagee may require flood insurance exceeding the lesser of the property's replacement value or the outstanding principal mortgage balance. This regulation is aimed at protecting homeowners from being overburdened by excessive insurance requirements when taking out or renewing a mortgage loan.

Contention

There may be opposing views regarding the bill, particularly from the perspective of mortgage lenders, who might argue that imposing limits on required flood insurance could expose them to higher risks in the event of a flood disaster. Lenders typically operate under the existing federal regulations and may view the state amendments as potentially complicating compliance with national standards. Additionally, the requirement for lenders to provide clear notifications about the limitations of required insurance could be seen as an additional administrative burden, leading to differing opinions on its practicality.

Companion Bills

NY S08066

Same As Sets the definition of "principal" for the purposes of limits on amount of flood insurance required by a mortgagee and clarifies applicability of the state law relative to certain federal programs and requirements.

Previously Filed As

NY S08066

Sets the definition of "principal" for the purposes of limits on amount of flood insurance required by a mortgagee and clarifies applicability of the state law relative to certain federal programs and requirements.

NY A08244

Increases fee amount authorized to be imposed on mortgagees or their agents.

NY S07933

Increases fee amount authorized to be imposed on mortgagees or their agents.

NY A06576

Requires peer-to-peer car sharing programs provide insurance coverage in amounts equal to the financial responsibility requirements set forth in section three hundred eleven of the vehicle and traffic law; removes requirements relating to requiring additional insurance coverage.

NY S05941

Requires peer-to-peer car sharing programs provide insurance coverage in amounts equal to the financial responsibility requirements set forth in section three hundred eleven of the vehicle and traffic law; removes requirements relating to requiring additional insurance coverage.

NY A11069

Imposes certain requirements for the use of aerial images of an insured property for the purposes of homeowners' insurance; requires certain notices and appeals process.

NY S09156

Imposes certain requirements for the use of aerial images of an insured property for the purposes of homeowners' insurance; requires certain notices and appeals process.

NY HB05317

An Act Defining "mortgage Loan" For Purposes Of Certain Notice Provisions Relating To Flood Damage And Insurance.

NY HB05503

An Act Requiring Mortgagees To Provide Mortgagors With Periodic Statements.

NY A09464

Clarifies the definition of custom fabrication for the purposes of prevailing wage; requires certain reports for public works contracts including such custom fabrication.

Similar Bills

No similar bills found.